summary of fy14 recommendations · montgomery county government (mcg): the net impact on the county...

Workforce/Compensation

Workforce/Compensation Workforce/Compensation 8-1

SUMMARY OF FY14 RECOMMENDATIONS

A. SUMMARY OF AGENCY REQUESTS Montgomery County Public Schools (MCPS): The MCPS workforce for FY14, as recommended by the Board of Education (BOE), is 21,241.8 FTEs, or 400.1 FTEs greater than the approved FY13 workforce of 20,841.7 FTEs. The BOE is currently in labor negotiations with the public schools’ bargaining units, the Service Employees International Union (SEIU), the Montgomery County Education Association (MCEA), the Montgomery County Association of Administrators and Personnel (MCAAP), and the Montgomery County Business and Operations Administrators (MCBOA). For more information on compensation and workforce changes, please see the Board of Education FY14 recommended budget document. MCPS’ budget request contains funds for service increments or steps.

Montgomery College (MC): There is no increase in the size of the Montgomery College complement for FY14, as re-quested by the College and its Board of Trustees. This is accompanied by an increase in personnel costs of about $9.4 million. The primary factors for these cost increases are compensation enhancements, including service increments and general wage adjustments, reclassifications, promotions, and benefit changes. For more information on compensation and workforce changes, please consult the Adopted FY14 Montgomery College Operating Budget Request, available on the College’s web-site.

Maryland-National Capital Park & Planning Commission (M-NCPPC): The net impact on the M-NCPPC workforce for FY14, as recommended by the Planning Board, is an increase of 5.2 FTEs. The Commission’s requested budget includes an increase in personnel costs of $3.0 million. The increase includes retirement and group insurance adjustments, post-employment benefits (OPEB) prefunding, benefit cost share restructuring, and compensation place holder (to address col-lectively bargained compensation increases and pass through costs). For more information on compensation and workforce changes, please see the M-NCPPC FY14 requested budget document.

Montgomery County Government (MCG): The net impact on the County government workforce for FY14, as recommended by the Executive, is an increase of 128 positions. The recommended budget contains an increase in total personnel costs of $26.1 million, or 2.7 percent. The primary factors in these changes are:

Millions● General Wage Adjustment $20.2● Increase in group insurance and retirement $13.2● Service increments and longevity $8.6● Net increase in positions $6.6● Other negotiated increases $1.5● Other changes in personnel costs, including turnover and lapse -$7.7● Removal of FY13 $2,000 lump-sum bonus -$16.3

The recommendations in the remainder of this section are for the County government and are based upon the bargained agreements with the United Food and Commercial Workers, Local 1994 (Municipal and County Government Employees Organization – MCGEO), the International Association of Fire Fighters (IAFF), Local 1664, the Fraternal Order of Police (FOP), Lodge 35, and Montgomery County Volunteer Fire and Rescue Association (MCVFRA). Certain provisions of the agreements have been extended to unrepresented employees, as noted below.

8-2 Workforce/Compensation FY14 Operating Budget and Public Services Program FY14-19

B. COUNTY GOVERNMENT SALARY AND WAGES GENERAL WAGE ADJUSTMENT: The Executive recommends the following general wage adjustments (GWA) in FY14: 3.25 percent for all employees in the Office, Professional, and Technical (OPT) and Service, Labor, and Trades (SLT) units, effective in the first full pay period in September 2013; 2.1 percent for all employees in the Police bargaining unit and Police uniformed managers, effective the first full pay period after July 1, 2013; 2.75 percent for employees in the Fire and Rescue bargaining unit and Fire and Rescue uniformed managers, effective the first full pay period after July 1, 2013; and 3.25 per-cent for all non-represented employees, including Management Leadership Service (MLS) employees, effective in the first full pay period in September 2013. LUMP-SUM PAYMENT: The Executive recommends a bonus payment equal to 0.5 percent of salary for employees who are not moving into a longevity step but are at the maximum salary for their grade. This bonus will be paid to County employees represented by MCGEO and non-represented employees not in MLS. These payments will not be added to base salary.

FY14 salary schedules can be found on the County’s website at http://www.montgomerycountymd.gov/ohr/classification/classcomp.html. SERVICE INCREMENTS: The Executive recommends service increments of 3.5 percent for all eligible employees. The Executive also recommends service increments for certain groups of employees who were eligible but did not receive incre-ments in FY11 and FY12. Police bargaining unit and Police uniformed managers receive a 1.75 percent increment starting the first full pay periods of February 2014 and February 2015. Fire and Rescue bargaining unit and Fire and Rescue uniformed managers receive a 3.5 percent increment the first full pay period in April 2014 and in June 2015. LONGEVITY INCREMENTS: The Executive recommends longevity increments in FY14 for all eligible employees.

PERFORMANCE-BASED PAY: The Executive recommends $1,794,187 in the Compensation Adjustment and Employee Benefits NDA to fund performance-based pay increases for MLS employees. C. COUNTY GOVERNMENT: EMPLOYEE BENEFITS The following employee benefits are funded in the Executive's recommended budget through a combination of lump sum or payroll-based contributions.

FICA (Social Security & Medicare) Workers' Compensation Group Insurance Employees’ Retirement System Retirement Savings Plan

Social Security and Medicare: Contributions are collected from County departments and agencies each payday based on actual payroll. Since contribution rates and salary maximums change at the start of the calendar year, figures used in the recommended fiscal year budget represent an average of the rates set for 2013 and projected changes for 2014. The employer rates are not expected to change but the annual salary maximum on which to base FICA is projected to increase by about $4,800 or 4.3 percent.

Workers’ Compensation: This is handled through the County’s Risk Management program under the Department of Finance. Departments with significant non-tax revenues make annual contributions to the Liability and Property Coverage Self-Insurance Fund. A lump sum contribution to the Fund for insurance for the remaining County departments is made annually through the Risk Management (General Fund portion) Non-Departmental Account. Participating County agencies also make annual lump sum contributions. Contributions for all members are set each year based on an actuarial valuation of claims experience for Workers’ Compensation.

Group Insurance Benefits: The contributions for health insurance are based on a countywide average fixed rate, and the contribution for life insurance is based on fixed rates per coverage amounts based on an employee’s salary.

It is projected for the long term that the annual cost of group insurance for the County, including active employees and retirees, could increase an average of approximately nine percent annually between FY15 and FY19. Contribution rates during this period will be set based on various factors, including the fund balance in the Health Insurance Fund and claims cost experience.

http://www.montgomerycountymd.gov/ohr/classification/classcomp.html


Montgomery County Government (MCG) FY14

General Fund:Retiree Health Benefits Trust NDA $51,319,040

Proprietary Funds:Bethesda Parking District $248,290Wheaton Parking District 25,690Silver Spring Parking District 171,230Solid Waste Collection 42,810Solid Waste Disposal 633,570Liquor Control 2,577,070Permitting Services 1,652,410Community Use of Public Facilities 231,170Motor Pool 1,720,890Risk Management 85,620Central Duplicating 265,410

Participating Agency Contributions $2,994,800

Total MCG Trust Contributions $61,968,000Consolidated Trust: Montgomery County Public Schools $87,836,000Consolidated Trust: Montgomery College $2,489,000Park and Planning Commission Trust Fund* $2,570,524

Total Contributions/Assets Held in Trust $154,863,524

* MNCPPC's contribution from tax supported funds is $2,474,431.

Proposed FY14 Consolidated RetireeHealth Benefits Trust Contributions

Retirement Benefits: Montgomery County government maintains a system of retirement pay and benefits for its employees which are intended to provide income during their retirement years. The Employees’ Retirement System, which currently provides benefits to approximately 5,824 retirees and survivors, was administered beginning in FY13 by a new organization called Montgomery County Employee Retirement Plans (MCERP). This new organization will oversee all facets of the retirement plans including investments, administration, and accounting. Retirement plan design changes occurring through the collective bargaining process and by other means will be coordinated by this new organization in consultation with the Office of Human Resources, the County's actuaries, the Finance Department, and the Office of Management and Budget.

Consolidated Retiree Health Benefits Trust: Beginning in FY08, the County implemented a plan to set aside funds for re-tiree health benefits, similar to the County’s 50 year-old practice of prefunding for retiree pension benefits. The reasons for doing this are simple: Due to exponential growth in expected retiree health costs, the cost of funding these benefits, which were being paid out as the bills came due, would soon become unaffordable. Setting aside money now and investing it in a Trust Fund, which is invested in a similar manner as the pension fund, not only is a prudent and responsible approach, but will result in significant savings over the long term.

As a first step in addressing the future costs of retiree health benefits, County agencies developed current estimates of the costs of health benefits for current and future retirees. These estimates, made by actuarial consultants, concluded that the County’s total future cost of retiree health benefits if paid out today, and in today’s dollars, is $1.9 billion – approximately forty percent of the total FY14 budget for all agencies.

One approach used to address retiree health benefits funding is to determine an amount which, if set aside on an annual basis and actively invested through a trust vehicle, will build up over time and provide sufficient funds to pay future retiree health benefits and any accrued interest on unfunded liability. This amount, known as an Annual OPEB Cost or “AOC”, is estimated at $142.9 million. This amount consists of two pieces – the annual amount the County would usually pay out for health benefits for current retirees (the pay as you go amount), plus the additional amount estimated as needed to fund retirees’ future health benefits (the pre-funding portion). The pay as you go amount can be reasonably projected based on known facts about current retirees, and the pre-funding portion is estimated on an actuarial basis. The County has committed to an approach of “ramping up” to the AOC amount over several years, with the amount set aside each year increasing steadily until the full AOC is reached. A total of $31.9 million for all tax supported agencies was budgeted for this purpose in FY08. In May 2008, the County Council passed resolution No. 16-555 which confirmed an eight-year phase-in approach to the AOC. Consistent with this approach and based on the County’s economic situation, the County contributed $14.0 million to the Trust in FY08, $19.7 million in

FY09, $3.3 million in FY10, and $7.3 million in FY11. Due to fiscal constraints, the County did not budget a contribution for the General Fund in FY10 and FY11, but did resume contributions in FY12. For FY12, the County contributed $26.1 million from the General Fund to the Retiree Health Benefits Trust. In addition, on June 26, 2011, the County Council enacted Bill 17-11 which established the Consolidated Retiree Health Benefits Trust. The bill amended existing law and provided a fund-ing mechanism to pay for other post employment benefits for employees of Montgomery County Public Schools and Mont-gomery County College. In FY12, the County appropriated $20 million and $1 million for contributions on behalf of MCPS and the College, respectively. In FY13, these contributions grew to $41.4 million (County General Fund), $58.9 million (MCPS Consolidated Trust), and $1.8 million (Montgomery College Consolidated Trust). A detailed breakdown of FY14 rec-ommended contributions to the Consolidated Retiree Health Benefit Trust for County Government tax supported agencies, participating agencies, Montgomery County Public Schools, and Montgomery College is displayed in the table above. The Council and the Executive have mutually committed to the County’s rating agencies to achieve full pre-funding by FY15.


Retirement Plans:

Montgomery County government maintains three retirement plans for its employees: a defined benefit pension plan, a defined contribution plan, and a deferred compensation plan for its employees and participating agencies. 1) The Employees’ Retirement System (ERS), a defined benefit pension plan, was established through legislation in 1965 and is described in the Montgomery County Code, Section 33. As of June 30, 2012, there were 5,824 retirees and survivors and 5,554 active members. Retirement plan design changes occurring through the collective bargaining process and by other means are co-ordinated by the MCERP staff, in consultation with the County's actuaries, the Office of Human Resources, the Finance De-partment, and the Office of Management and Budget. The ERS consists of four plans including a Mandatory Integrated Retirement Plan, an Optional Non-Integrated Retirement Plan, an Optional Integrated Plan, and a Guaranteed Retirement Income Plan. The Guaranteed Retirement Income Plan (GRIP) is a Cash Balance Plan that began in FY10 as a result of negotiations between Montgomery County and UFCW Local 1994 MCGEO. Eligibility to participate has been passed through to non-represented employees and participants of participating agencies. All full and part-time non-public safety employees hired before January 1, 2009 enrolled in the RSP were eligible to make a one-time irrevocable election to transfer to the GRIP by June 1, 2009. Eligible employees hired after January 1, 2009, have the option to participate in either the RSP or the GRIP. As with the RSP, the County and employee each make contributions at a set percentage of pay. The salient feature of the GRIP is that the plan provides guaranteed annual earnings of 7.25%, credited monthly. 2) The Retirement Savings Plan (RSP), a defined contribution plan, was established for all new OPT/SLT (non-public safety) and non-represented employees hired on or after October 1, 1994. Eligible employees hired after January 1, 2009, have the option to participate in either the RSP or the GRIP. Eligible employees in the ERS are allowed to transfer to the Retirement Savings Plan. Both regular full-time and part-time employees can participate. Under this plan, the County and employee each make contributions at a set percentage of pay. These monies are deposited into employee accounts and invested based on each employee’s selection of an investment vehicle(s) established by the Board of Investment Trustees.

3) The Montgomery County Deferred Compensation Plan (DCP) was established by the County to make a deferred compen-sation plan available pursuant to Section 457 of the Internal Revenue Code. Employee contributions are made on a voluntary basis with the monies deposited into employee accounts and invested based on each employee’s selection of an investment vehicle(s) established by the Board of Investment Trustees. In FY 2005, the County established the Montgomery County Un-ion Employees Deferred Compensation Plan for employees covered by a collective bargaining agreement. This Plan is ad-ministered by the three unions representing Montgomery County employees.

The Board of Investment Trustees manages the assets of the ERS through its investment managers in accordance with the Board’s asset allocation strategy. The Board also administers the investment program for the Retirement Savings Plan and the Montgomery County Deferred Compensation Plan. The Montgomery County Union Employees Deferred Compensation Plan is administered by the three unions representing Montgomery County employees. The Board currently consists of 13 trustees including: the Directors of Human Resources, Finance, Management and Budget, and the Council Staff; one mem-ber recommended by each employee organization; one active employee not represented by an employee organization; one retired employee; two members of the public recommended by the County Council; and two members of the general public.

Change in Retirement System Membership: The number of active non-public safety in the ERS declined by 86 and the number of public safety employees increased by 25, for a combined total active enrollment of 4,452. GRIP membership in-creased by 100 employees, to 1,102 in FY13. The RSP had 183 fewer active employees enrolled in FY13 than in FY12, for a total FY13 enrollment of 3,564. Funds for the County’s contribution to the ERS for each member employee are included in the appropriate County govern-ment departmental budget or agency budget. The County uses multiple contribution rates designating the percentage of pay-roll for the various employee groups to determine the retirement contribution.

County contributions are determined using actuarially sound assumptions to assure the financial health of the Fund. Factors that affect the County’s contributions include the impact of compensation adjustments, changes in the size of the workforce, investment returns, and collectively bargained benefit changes. The ERS contribution rates reflect projections of revenues and expenses to the fund. Revenues include County and member contributions which are set at fixed percentages of salaries and investment income which is driven by both earnings in the various financial markets and the size of the Fund balance in-vested.


Expenses of the Fund include pension payments which are affected by mandated cost-of-living increases and changes in the number of retirees and survivors; administrative and operational expenses of the Fund managers and financial consultants; and charges for services provided by the MCERP staff, as well as staff from Finance and Human Resources.

COLLECTIVE BARGAINING Fire and Rescue Bargaining Unit: The current agreement expires June 30, 2013. The negotiated agreement becomes effective on July 1, 2013, and expires on June 30, 2016. The agreement’s salient economic terms include:

Reopener for the third year (FY16) of the contract. Negotiations will be over the following topics: wages, service increments, longevity, special duty differentials, casual leave, and Workers’ Compensation and disability leave. Random drug testing will also be discussed but the issue will not be subject to impasse.

Assignment pay differentials. The following differentials are increased by $200 to $1,837: Hazardous Materials, Self Contained Breathing Apparatus Technician, Fire Code Compliance Section, Fire Investigations Unit, Urban Search and Rescue Team, Swift Water Rescue Team, and Scheduler. The differential paid to a Fire Captain serving as Sta-tion Commander will increase by $200 to $3,087. All Response Team certifications will increase from $407 to $500.

Longevity step increases. A longevity step increase will be paid to employees who qualify during FY14. General Wage Adjustment. A 2.75 percent GWA will be paid the first full pay period following July 1, 2013, and

July 1, 2014. Prescription Drug Plan. Beginning January 1, 2014, the Prescription Drug Plan will no longer offer the 90-day post

formulary change grace period granted upon formulary changes. Workplace renovations. Employees working at stations where workplace kitchens appliances are unavailable due to

renovation will receive a per diem payment. Employees who were eligible but who missed a FY11 or FY12 service increment. Eligible unit members who were

eligible but who did not receive a service increment in FY11 will receive it during the pay period beginning April 6, 2014. Eligible unit members who were eligible but who did not receive a service increment in FY12 will receive it during the pay period beginning June 14, 2015.

Service Increments. A service increment of 3.5 percent will be paid in FY14 and in FY15 for eligible unit members. MCGEO Bargaining Unit: The current agreement expires on June 30, 2016. The parties agreed to an early termination of the July 1, 2012 through June 30, 2015 agreement, which included a reopener for FY14. The new agreement’s salient economic terms include:

A reopener for the third year (FY16) of the contract. Negotiations will be over the following topics: wages, service increments, longevity, any Workers’ Compensation and disability leave issues not resolved within the Labor Man-agement Wellness Committee, and the inclusion of a DROP program in the Public Safety Retirement Plan.

General Wage Adjustment. A 3.25 percent GWA will be paid the first full pay period following September 1 in FY14 and in FY15.

Longevity step increases. A longevity step increase will be paid to employees who qualify during FY14. Lump sum payment. A 0.5 percent lump sum payment will be paid in FY14 and in FY15 to bargaining unit members

who are at the top of their pay grade and actively employed by the County on July 1 of each fiscal year. Employees who are scheduled to receive a longevity step during FY14 are not eligible. This payment is not added to the employ-ees’ base salary.

Shift differential. For shifts beginning between the hours of 2:00 p.m. and 10:59 p.m., the hourly rate will increase by $0.15 to $1.40; for shifts beginning between 11:00 p.m. and 5:00 a.m., the hourly rate will increase by $0.16 to $1.56.

Multilingual Pay Differential. Unit members who utilize multilingual skills during the performance of their routine duties and on a recurring basis may submit a departmental request for certification. The pay differential will be paid after testing.

Emergency Vehicle Technician (EVT) certification for eligible employees assigned to Central Maintenance of Mont-gomery County Fire and Rescue Service. Eligible employees shall receive a $1,000 incentive for obtaining a valid EVT master certification, for a maximum of two ($2,000) EVT certifications.

Service Increments. A service increment of 3.5 percent will be paid in FY14 and in FY15 for eligible unit members. Individual classification studies. A total of 50 individual studies will be accepted in June 2013 for FY14 study and in

June 2014 for FY15 study.


Prescription Drug Plan. Beginning January 1, 2014, the Prescription Drug Plan will no longer offer the 90-day post formulary change grace period granted upon formulary changes.

Seasonal Salary Schedule. Seasonal employees who do not encumber OPT/SLT unit positions shall receive a $0.50 per hour increase the first full pay period in July 2013 and in 2014.

Clothing allowance. Sheriff’s unit members’ clothing allowance will increase by $163 to $1,338. Police Bargaining Unit: The parties agreed to extend the duration of the July 1, 2012, through June 30, 2014, agreement. The current agreement ex-pires on June 30, 2015. The agreement’s salient economic terms include:

Clothing allowance. The contract increases the clothing allowance in the following categories: formal and variety by $87 to $1,338; SAT (Special Assignment Team) by $56 to $862; casual by $37 to $569; and partial by $26 to $391.

Shift differential. For shifts beginning on or after noon and prior to 7:59, the hourly rate will increase by $0.09 to $1.42; for shifts beginning on or after 8:00 p.m. and before 5:59 a.m., the hourly rate will increase by $0.12 to $1.87.

Employees who were eligible but who missed at least one service increment since FY11. Eligible unit members will receive a 1.75 percent service increment starting the first full pay period of February 2014 and of February 2015.

Service Increments. A service increment of 3.5 percent will be paid in FY14 and in FY15 for eligible unit members. Longevity step increases. A longevity step increase will be paid to employees who qualify during FY14. General Wage Adjustment. A 2.1 percent GWA will be paid the first full pay period following July 1, 2013, and July

1, 2014. Prescription Drug Plan. Beginning January 1, 2014, the Prescription Drug Plan will no longer offer the 90-day post

formulary change grace period granted upon formulary changes.

WORKFORCE ANALYSIS Basis: Workforce analysis has been performed on changes to tax supported and non-tax supported full-time equivalent (FTE) positions in the Executive's Recommended FY14 Operating Budget for the County government. Overall changes are calculated in comparison to the Approved Personnel Complement for FY13, which began on July 1, 2012. Changes shown reflect such factors as the addition of grant-funded positions; abolishments and creations to implement approved job sharing agreements; and other miscellaneous changes. Changes recommended by the Executive for FY14 are in three categories: current year position changes due to supplemental appropriations or other actions; new fiscal year position changes scheduled to take effect July 1, 2013; and technical changes, primarily due the transition to a new budgeting system.

Summary: The recommended budget includes funding for 8,767 full-time positions, a net increase of 115 from the approved FY13 Personnel Complement of 8,652 full-time positions. Funding for 878 part-time positions is also included, a net increase of 13 positions from the approved FY13 Personnel Complement of 865 positions. Detailed below are the significant net changes in the number of positions in the FY14 Recommended Budget.


Workforce ChangesPosition Change

• Police - Change is due to second year of the data-driven Staffing Initiative. It includes resources for the Wheaton Central Business District and Montgomery Village; the School Resource Officers program, doubling the number of officers in schools; crisis intervention; and missing persons. The department has also replaced an expired Gang Unit grant with County funds.

40

• Public Libraries - Increase is due to the reopening of the Gaithersburg and Olney Libraries and enhanced hours at the Poolesville and Long Branch Libraries.

33

• Fire and Rescue Service - Increase is primarily due to the opening of the new Travilah Station and the creation of new Emergency Medical Services (EMS) supervisor positions. All new positions are funded with EMS reimbursement revenue.

25

• Liquor Control - Increase is due to the opening of new retail locations in Seneca Meadows andClarksburg.

16

• Finance - Increase reflects the FY13 Controller’s Division mid-year reorganization to enhance compliance with new audit and Governmental Accounting Standards Board standards, as well as to better address the volume and complexity of financial transactions, ongoing reporting and analysis, and the production of the Comprehensive Annual Financial Report.

6

• Health and Human Services - Decrease is due to the discontinuation of the State Resource Coordination Services Grant for Developmental Disabilties. The change also reflects increased staffing due to the opening of Gaithersburg and Watkins Mill High School Wellness Centers, and the opening of the Viers Mill and Weller Road Elementary School Based Health Centers.

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MONTGOMERY COUNTY GOVERNMENT - MEDICAL PLAN ENROLLMENT, ACTIVE EMPLOYEES

HEALTH PLAN EMP EMP+1 FAM TOTAL% OF

INSURED EMP EMP+1 FAM TOTAL% OF

INSURED EMP EMP+1 FAM TOTAL %Dif

Carefirst POS 1,466 1,103 2,101 4,670 58.4% 1,448 1,079 2,073 4,600 56.6% (18) (24) (28) (70) -1.8%Carefirst POS Std 156 113 156 425 5.3% 189 139 166 494 6.1% 33 26 10 69 0.8%Kaiser 455 266 454 1,175 14.7% 532 277 457 1,266 15.6% 77 11 3 91 0.9%United Healthcare 488 398 844 1,730 21.6% 542 391 835 1,768 21.8% 54 (7) (9) 38 0.1%

Grand Total 8,000 8,128 128

2012 2013 CHANGE

MONTGOMERY COUNTY GOVERNMENT WORKFORCE CHANGE SUMMARYCOUNTY EXECUTIVE RECOMMENDED: FY14

POSITIONSFull Time Part Time Tax Supported Non-Tax Supp. TOTAL

FY13 APPROVED COMPLEMENT 8,652 865 7,572.5 1,655.0 9,227.6

FY14 RECOMMENDED COMPLEMENT 8,767 878 7,726.0 1,688.4 9,414.4

CHANGE IN WORKFORCE (GROSS) 115 13 153.5 33.4 186.8 Percentage Change 1.3% 1.5% 2.0% 2.0% 2.0%

FULL-TIME EQUIVALENTS

RETIREMENT FUNDS: ENROLLMENT & COUNTY CONTRIBUTION RATES

Employee RetirementSystem Plans

NumberEmployees

Fiscal 2013Contribution

RateNumber

Employees

Fiscal 2014Contribution

RateNumber

EmployeesContribution

Rate(7/1/11) % (7/1/12) % (7/11 v. 7/12) (7/11 v. 7/12)

Public SafetyOptional, Nonintegrated 9 444.75% 2 619.71% (7) 174.96%Optional, Integrated 26 983.09% 3 1609.69% (23) 626.60%Mandatory Integrated 2,820 39.51% 2,685 43.71% (135) 4.20% Subtotal Public Safety 2,855 41.47% 2,690 45.84% (165)

Non-Public SafetyOptional, Nonintegrated 28 87.51% 25 109.77% (3) 22.26%Optional, Integrated 52 102.30% 44 129.55% (8) 27.25%Mandatory Integrated 1,578 32.31% 1,503 35.51% (75) 3.20% Subtotal Non-Public Safety 1,658 35.38% 1,572 39.17% (86)

Guaranteed RetirementIncome Plan 1,002 7.09% 1,102 6.45% 100 -0.64%

Total ERS System Plans 5,515 5,364 (151)

Retirement Savings Plan 3,747 8.00% 3,564 8.00% (183) 0.00%

Source: Montgomery County Employees' Retirement System, 2011 and 2012 Actuarial Valuation Reports for Plan Years Beginning July 1, 2011, and July 1, 2012, respectively. RSP data provided by the Montgomery County Employee Retirement Plans.


ITEM FY12 APPR FY12 ACT FY13 APPR FY13 EST FY14 REC $ Change % Change

EXPENSES Salaries and Benefits 77,340 101,283 91,873 109,300 125,700 33,827 36.8%

Professional Services 5,500 55,694 5,500 23,500 5,000 (500) (9.1%)

Due Diligence/Education 1,000 1,735 1,000 1,500 2,000 1,000 100.0%

Office Management 5,510 3,845 5,310 5,300 6,700 1,390 26.2%

Investment Management 10,000 8,370 9,000 8,400 9,000 0 0.0%

TOTAL EXPENSES 99,350 $170,927 $112,683 $148,000 $148,400 $35,717 31.7%

ITEM FY12 APPR FY12 ACT FY13 APPR FY13 EST FY14 REC $ Change % Change

EXPENSES Salaries and Benefits 66,960 45,000 52,500 52,500 170,000 117,500 223.8%

Professional Services 75,000 0 0 0 0 0

Due Diligence/Education 0 0 6,000 20,000 48,000 42,000 700.0%

Office Management 1,500 1,100 1,200 3,000 9,400 8,200 683.3%

Investment Management 70,000 99,343 308,000 250,000 1,500,000 1,192,000 387.0%

TOTAL EXPENSES $213,460 $145,443 $367,700 $325,500 $1,727,400 $1,359,700 369.8%

The chart illustrates MCERP expenditures only.

ITEM FY12 APPR FY12 ACT FY13 APPR FY13 EST FY14 REC $ %

REVENUE Contributions 146,500,000 130,688,905 139,600,000 151,700,000 146,400,000 6,800,000 4.9% Investment Income 212,000,000 134,103,217 227,000,000 296,000,000 241,000,000 14,000,000 6.2% Miscellaneous Income 700,000 1,174,289 735,000 1,000,000 950,000 215,000 29.3%

TOTAL REVENUE 359,200,000 265,966,411 367,335,000 448,700,000 388,350,000 21,015,000 5.7%

EXPENSESOPERATING EXPENSES Retirement Benefits 204,500,000 205,268,948 226,000,000 226,400,000 245,000,000 19,000,000 8.4% Investment Management 19,300,000 17,585,825 21,200,000 21,200,000 23,000,000 1,800,000 8.5%

SUBTOTAL 223,800,000 222,854,773 247,200,000 247,600,000 268,000,000 20,800,000 8.4%ADMINISTRATIVE EXPENSES Salaries and Benefits 1,775,920 1,742,539 1,654,200 1,669,600 1,582,700 (71,500) (4.3%)

Professional Services 833,930 635,946 813,933 1,003,600 895,900 81,967 10.1% Benefit Processing 375,000 1,059,818 375,000 130,000 130,000 (245,000) (65.3%) Due Diligence/Education 53,500 26,684 55,500 60,400 64,700 9,200 16.6% Office Management 241,887 80,667 240,887 92,500 99,300 (141,587) (58.8%)

SUBTOTAL 3,280,237 3,545,654 3,139,520 2,956,100 2,772,600 (366,920) (11.7%)TOTAL EXPENSES $227,080,237 $226,400,427 $250,339,520 $250,556,100 $270,772,600 20,433,080 8.2%

NET REVENUE $132,119,763 $39,565,984 $116,995,480 $198,143,900 $117,577,400 581,920 0.5%

ITEM FY12 APPR FY12 ACT FY13 APPR FY13 EST FY14 REC $ %

REVENUE Investment Income 6,250 2 1,500 10 20 (1,480) (98.7%)

Miscellaneous Income 500,000 252,634 240,000 90,000 90,000 (150,000) (62.5%)

TOTAL REVENUE 506,250 252,636 241,500 90,010 90,020 (151,480) (62.7%)

EXPENSESOPERATING EXPENSES Investment Management 10,000 8,370 9,000 8,400 9,000 0 0.0%

SUBTOTAL 10,000 8,370 9,000 8,400 9,000 0 0.ADMINISTRATIVE EXPENSES Salaries and Benefits 162,390 190,420 205,460 140,800 157,400 (48,060) (23.4%)

Professional Services 73,500 100,679 89,500 104,500 89,200 (300) (0.3%)

Due Diligence/Education 2,000 1,735 2,000 1,500 2,000 0 0.0%

Office Management 23,630 12,002 23,430 5,300 6,700 (16,730) (71.4%)

SUBTOTAL 261,520 304,836 320,390 252,100 255,300 (65,090) (20.3%)TOTAL EXPENSES $271,520 $313,206 $329,390 $292,410 $292,410 (36,980) (11.2%)

Source: Montgomery County Employee Retirement Plans.

FY14 vs. FY13 Appr.

Amounts shown above are not charged to the Deferred Compensation Plan Trust but are instead appropriated and charged to the General Fund Compensation and Employee Benefits Adjustments Non-Departmental Account.

FY14 vs. FY13 Appr.

FY14 vs. FY13 Appr.

PROPOSED OPERATING BUDGET DEFERRED COMPENSATION MANAGEMENT

PROPOSED OPERATING BUDGET RETIREE HEALTH BENEFIT TRUST

PROPOSED OPERATING BUDGET EMPLOYEES' RETIREMENT SYSTEM

FY14 vs. FY13 Appr.

PROPOSED OPERATING BUDGET RETIREMENT SAVINGS PLAN

0.0%

0%


Article Item Description FY14 FY15Annual Cost

Beyond FY155 Wages 3.25 Percent General Wage Adjustment in

September 2014 and 2015$9,566,809 $21,039,919 $22,960,342

5.1 Longevity Longevity Step Increase of 3 Percent for Eligible Employees

$121,072 $358,467 $474,791

5.2 Wages .5% Bonus for Employees at the Maximum Salary of Pay Grade in July 2013 and 2014

$488,858 $488,858 $0

5.24 EVT Certification

Emergency Vehicle Technician Certification Incentive Paid to Employees Working in Central Maintenance of Montgomery County Fire and Rescue Service (Maximum $2,000 Annually)

$26,000 $26,000 $0

5.3 Shift Differential Hourly Shift Differential Increased by $0.15 to $1.40 for Work Beginning Between 2:00 p.m. and 10:59 p.m. and by $0.15 to $1.56 for Work Beginning Between 11:00 p.m. and 5:00 a.m.

$223,267 $223,267 $223,267

6 Service Increments

Service Increment of 3.5 Percent for Eligible Employees

$3,808,768 $11,276,940 $14,936,345

9.1 Classification Issues

50 Additional Classification Studies Accepted in June 2013 and in June 2014 in Preparation for Evaluation the Following Fiscal Year

$200,000 $200,000 $0

21 Prescription Drug Plan

Prescription Formulary 90-Day Grace Period Discontinued

-$7,770 -$15,540 -$15,540

53 Seasonal Employees

Additional $0.50 for Seasonal Employees in FY14 and FY15

$340,425 $680,850 $680,850

Appendix I OPT Unit - Sheriffs

Sheriff's Department Clothing Allowance Increased by $163 to $1,338.

$2,934 $2,934 $2,934

Subtotal - MCGEO $14,770,362 $34,281,696 $39,262,988

Item Description FY14 FY15Annual Cost

Beyond FY15Wages 3.25 Percent General Wage Adjustment in

September 2014 and 2015$5,546,466 $12,198,131 $13,311,518

Longevity Longevity Step Increase of 2 Percent for Eligible Employees

$35,828 $106,080 $140,504

Wages .5% Bonus for Employees at the Maximum Salary of Pay Grade in July 2013 and 2014

$255,119 $255,119 $0

Shift Differential Hourly Shift Differential Increased by $0.15 to $1.40 for Work Beginning Between 2:00 p.m. and 10:59 p.m. and by $0.15 to $1.56 for Work Beginning Between 11:00 p.m. and 5:00 a.m.

$16,178 $16,178 $16,178

Service Increments


$1,158,215 $3,429,224 $4,542,018

Prescription Drug Plan

Discontinue the Prescription Formulary 90-Day Grace Period

-$2,563 -$5,125 -$5,125

Seasonal Employees

Additional $0.50 for Seasonal Employees in FY14 and FY15

$3,071 $6,142 $6,142

OPT Unit - Sheriffs

Sheriff's Department Clothing Allowance Increased by $163 to $1,338.

$326 $326 $326

Subtotal - Non-Represented $7,012,641 $16,006,076 $18,011,561

Total - MCGEO and Non-Represented Pass Through $21,783,003 $50,287,772 $57,274,549

* Estimates reflect the impact to all funds. Increases apply in the first full pay period during the month noted.

Non-Represented Pass-Through Estimates

Municipal and County Government Employees OrganizationUnited Food and Commercial Workers, Local 1994

Fiscal Impact Summary*



Beyond FY156 Clothing

AllowanceClothing Allowance Increased by 7 Percent $21,178 $21,178 $21,178



-$1,305 -$2,610 -$2,610



$1,369,345 $3,611,305 $4,075,210


FY11 Increment - 1.75 Percent Paid February 2014 and 2015

$446,000 $1,516,401 $2,140,801

28 Longevity Longevity Step Increase of 3.5 Percent for Eligible Employees

$207,098 $546,170 $616,331

36 Wages 2.1 Percent General Wage Adjustment in July 2014 and 2015

$2,511,181 $5,022,362 $5,022,362

41 Shift Differential

Shift Differential Hourly Rate Increasedby 7 Percent

$143,803 $143,803 $143,803

Subtotal - FOP $4,697,301 $10,858,610 $12,017,076


Beyond FY15Clothing

AllowanceClothing Allowance Increased by 7 Percent $1,174 $1,174 $1,174

Wages 2.1 Percent General Wage Adjustment in July 2014 and 2015

$180,227 $360,453 $360,453

Service Increments


$8,270 $21,811 $24,613

Service Increments

FY11 Increment - 1.75 Percent Paid February 2014 and 2015

$6,186 $21,034 $29,695

Longevity Longevity Step Increase of 3.5 Percent for Eligible Employees

$12,186 $32,138 $36,266

Shift Differential

Shift Differential Hourly Rate Increasedby 7 Percent

$1,843 $1,843 $1,843

Subtotal - Police Uniformed Management $208,713 $437,279 $452,870

Grand Total $4,906,014 $11,295,889 $12,469,947

* Estimates reflect the impact to all funds. Increases apply in the first full pay period during the month noted.

Police Uniformed Management Pass-Through Estimates

Fraternal Order of Police County Lodge 35, Inc.Fiscal Impact Summary*



Beyond FY1517 Special Duty

DifferentialsAssignment Pay Differentials Increase by $200 to Either $1,837 or $3,087 in FY15**. Response Team Certifications Increase by $93 to $500.

$0 $153,650 $153,650

19 Wages 2.75 Percent General Wage Adjustment in July 2014 and 2015

$3,038,307 $6,076,615 $6,076,615

19 Longevity Longevity Step Increases of 3.5 Percent for Eligible Employees

$154,057 $426,702 $579,107



-$1,781 -$3,561 -$3,561



$948,438 $2,804,559 $3,712,241


FY11 Increment Paid April 2014 and FY12 increment Paid June 2015

$518,369 $2,171,824 $4,317,025

Subtotal - IAFF$4,657,391 $11,629,788 $14,835,076


Beyond FY15Wages 2.75 Percent General Wage Adjustment in FY14

and FY15$181,171 $362,343 $362,343

Longevity Longevity Step Increases of 3.5 Percent for Eligible Employees

$14,615 $40,479 $54,937

Service Increments


$6,103 $18,046 $23,886

Service Increments

FY11 Increment Paid April 2014 and FY12 increment Paid June 2015

$12,932 $53,994 $90,607

Subtotal - Fire Uniformed Management $214,820 $474,862 $531,773

Grand Total $4,872,211 $12,104,649 $15,366,849

Montgomery County Career Fire Fighters Association, IncInternational Association of Fire Fighters, Local 1664

Fiscal Impact Summary*

Fire and Rescue Uniformed Management Pass-Through Estimates

* Estimates reflect the impact to all funds. Increases apply in the first full pay period during the month noted.** For a complete list of special duty differential increases, please refer to the Collective Bargaining - Fire and Rescue Bargaining Unit section of the chapter.

Work

force

/Com

pen

satio

n

Workforce/C

ompensation

8-13

4.18 4.40 4.48 4.66 4.67 4.58 4.41 4.48 4.56 4.67 4.81 4.57 4.293.76 3.70 3.87 3.96

3.283.40

3.553.62 3.71

3.623.53

3.72 3.794.14

4.264.16

4.01

3.69 3.743.70 3.71

0.94

1.001.02

0.95 0.991.01

1.001.03

1.06

1.12

1.45

1.19

1.15

1.07 1.15 1.15 1.17

0.460.35

0.290.39 0.39

0.320.32

0.290.31

0.28

0.30

0.55

0.54

0.53 0.52 0.50 0.50

1998,WYs: 8.86

1999,9.15

2000,9.34

2001,9.62

2002,9.75

2003,9.53

2004,9.25

2005,9.51

2006,9.72

2007,10.21

2008,10.81

2009,10.46

2010,9.99

2011,9.05

2012,9.12

2013,FTEs: 9.23

2014,9.35

HISTORY OF APPROVED COUNTY GOVERNMENT POSITIONSPER 1,000 POPULATION BY FUNDING CATEGORY

FY98-FY13 Approved Workyears and FTEs, FY14 Recommended FTEs1

Total Tax Supported Non Public Safety Total Tax Supported Public Safety Total Non-Tax Supported Total Grant Funded

1 From FY98 through FY12, workyears are used; beginning in FY13, full-time equivalent (FTE) positions will be used.

summary of fy14 recommendations · montgomery county government (mcg): the net impact on the county...

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